Sale of housing units have virtually come to a halt in Noida Extension following a Supreme Court order quashing land acquisition from farmers by the state authorities in some parts of the area, the apex real estate body CREDAI said on Wednesday, July 13.
Builders are estimated to have launched a minimum 50,000 housing units in Noida Extension, which is part of Greater Noida, but buyers are keeping safe distance in the face of the Supreme Court judgment annulling 156 hectares of land acquired for building about 6,000 of these houses.
They have organized a press conference on Thursday, July 14, to share their side of the story. The conference, organized by the Western UP chapter of Confederation of Real Estate Developers Association of India (CREDAI) will be jointly addressed by all the affected realtors, including Amrapali, Supertech, Mahagun, Gulshan Homes and Shree Group.
CREDAI has said the builders are “victim” of the recent judgment by the Supreme Court and asked the development authorities to ensure that land acquisition is undertaken in a “transparent and proper manner” in future.
“There is fear in the consumers mind and sales have completely stopped in Noida Extension,” CREDAI Chairman Pradeep Jain told PTI when asked about the impact of the Supreme Court’s decision on property market in the area.
Earlier CREDAI had said that about 6,000 buyers have been affected by the Supreme Court judgment. As per an industry analyst, minimum 50,000 homes have been launched in the entire Noida Extension area.
He, however, said that sales have improved in Noida and Ghaziabad because of this decision.
Jain said: “We are the victim of the recent development in Greater Noida. Developers have bought the land through auction process. Besides, they have invested money by paying taxes and advertisements for the projects. Some had even started the construction.”
Acknowledging that buyers are equally victim, Jain said the association has asked its members to shift the affected consumers to alternate projects or return the money with interests.
Realty firm Amrapali has been worst affected by the judgment. It had said it would refund the entire amount to home buyers who have opted out of its township in the area.
Amrapali will have to return 40 acres of land to farmers. About 4,000 buyers in its ‘Smart City’ township have been affected because of the court order.However, another badly affected developer Supertech sought legal opinion on returning the service tax that was collected from consumers.
